The Securities and Exchange Commission (SEC) is seeking public comments on proposed amendments related to issuance and offer for sale of sustainability-themed bonds* that would enable SMEs and startups in Thailand to issue and offer such securities through crowdfunding and private placement channels in order to enhance their participation in driving the sustainable development agenda and information disclosure in accordance with international standards.

During March – April this year, the SEC conducted a public hearing and a focus group on the proposed amendments related to issuance and offer for sale of sustainability-themed bonds that would enable businesses of all types and sizes in Thailand, including, SMEs and startups, to issue and offer such securities through crowdfunding and private placement channels.

The proposed amendments include revisions to the information disclosure rules pertaining to sustainability-themed bonds to ensure that investors have accurate and complete information for decision-making, and to increase the credibility of sustainability-themed bonds. In addition, the SEC arranged the focus group session aiming to gather feedback from business operators and stakeholders on 28 March 2023. Most of the respondents expressed support for the proposed principles and amendments, and some also provided recommendations to enhance this proposal.

In drafting the amendments of relevant regulations, the SEC has taken the public’s comments and recommendations into consideration. This included amending regulations related to issuance and offer for sale of convertible debentures (CD) to enable limited companies to issue and offer GSSB** CD (PP-SME)***, amending information disclosure rules before and after the offering to enhance clarity while considering the appropriate level of burden of offering via private placement. In this regard, the SEC is conducting this public hearing on the drafted regulations to open up funding opportunities for SMEs and Startups as well as other businesses in the supply chain, allowing them to enhance greater adaptability and engagement in sustainable business development. This can be a key business strategy that helps to reduce sustainability risk and strengthen competitiveness – an important drive towards achieving country’s net zero target.

The consultation paper is available onhttps://www.sec.or.th/TH/Pages/PB_Detail.aspx?SECID=958.Stakeholders and interested parties are welcome to submit comments and suggestions via the website or email:debt@sec.or.th. The public hearing ends on 16 January2024.

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Remarks:

*sustainability-themed bonds includes GSSB and Sustainability-linked Bond (SLB).

** GSSB includes green bond, social bond, and sustainability bond.

*** PP-SME means an offering for sale of securities through private placement by small and medium-sized enterprises and private limited companies.